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<p>The total support costs associated with the Renewables Obligation (RO) since 2002
are set out in the table below.</p><p> </p><table><tbody><tr><td> </td><td><p><em>£bn
nominal prices</em></p></td></tr><tr><td><p><strong><em>2002/03</em></strong></p></td><td><p>0.28</p></td></tr><tr><td><p><strong><em>2003/04</em></strong></p></td><td><p>0.42</p></td></tr><tr><td><p><strong><em>2004/05</em></strong></p></td><td><p>0.49</p></td></tr><tr><td><p><strong><em>2005/06</em></strong></p></td><td><p>0.58</p></td></tr><tr><td><p><strong><em>2006/07</em></strong></p></td><td><p>0.72</p></td></tr><tr><td><p><strong><em>2007/08</em></strong></p></td><td><p>0.88</p></td></tr><tr><td><p><strong><em>2008/09</em></strong></p></td><td><p>1.04</p></td></tr><tr><td><p><strong><em>2009/10</em></strong></p></td><td><p>1.12</p></td></tr><tr><td><p><strong><em>2010/11</em></strong></p></td><td><p>1.29</p></td></tr><tr><td><p><strong><em>2011/12</em></strong></p></td><td><p>1.46</p></td></tr><tr><td><p><strong><em>2012/13</em></strong></p></td><td><p>1.99</p></td></tr><tr><td><p><strong><em>2013/14</em></strong></p></td><td><p>2.60</p></td></tr><tr><td
colspan="2"><p><em>Source: DECC based on Ofgem publications. </em></p></td></tr></tbody></table><p>The
impact of these support costs on actual energy bills depends on the total level of
electricity sales, how energy suppliers pass these costs through to consumers, and
the amounts of electricity consumed by individual consumers.</p><p>Assuming that costs
incurred by energy suppliers are passed on in full to all electricity consumers (including
households and businesses), and on an equal £/MWh basis, analysis published in March
20131 suggests that, in 2013, the RO accounted, on average, for around 2% (or £30,
in real 2012 prices) of an annual household energy (gas plus electricity) bill.</p><p>Under
the Electricity Market Reform, the RO will be closed to new capacity from 1<sup>st</sup>
April 2017, and large scale renewable electricity will be supported through the new
Contracts for Difference scheme.</p><p><em><strong>[1]</strong></em><em> <a href="https://www.gov.uk/policy-impacts-on-prices-and-bills"
target="_blank">https://www.gov.uk/policy-impacts-on-prices-and-bills</a></em></p><p>
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